Elaine Wyatt - CSR TRENDS 2010 Survey

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Elaine Wyatt - CSR TRENDS 2010 Survey

  1. 2. The scope of our survey <ul><li>Fourth annual review of CSR reports </li></ul><ul><li>Second year in partnership with PricewaterhouseCoopers </li></ul><ul><li>Looked at over 600 companies: </li></ul><ul><ul><li>S&P/TSX Composite, S&P 500, Europe 350, Global 100 and Australia S&P/ASX100 </li></ul></ul><ul><ul><li>Private companies and Crown corporations </li></ul></ul><ul><ul><li>CSR indices in search for best practices </li></ul></ul><ul><li>We looked at print and HTML reports as well as websites </li></ul>
  2. 3. The scope of our survey <ul><li>We collected data on 423 companies for our Big Picture: </li></ul><ul><ul><li>222 Canadian </li></ul></ul><ul><ul><li>100 U.S. </li></ul></ul><ul><ul><li>101 Europe, Japan, Australia </li></ul></ul>
  3. 4. The big picture <ul><li>No longer just nice to do; CSR has become a core business value </li></ul>As at July 15, 2010
  4. 5. The big picture <ul><li>Canada and the United States continue to lag </li></ul>As at July 15, 2010
  5. 6. The scope of our survey <ul><li>Detailed survey of 75 reports / websites </li></ul><ul><li>13 employees from Craib and PricewaterhouseCoopers </li></ul><ul><li>Over 100 content items and design features: </li></ul><ul><ul><li>Structure and medium </li></ul></ul><ul><ul><li>Design and production values </li></ul></ul><ul><ul><li>Key elements of content </li></ul></ul><ul><ul><li>Performance </li></ul></ul><ul><ul><li>Website treatment </li></ul></ul><ul><li>Average time to review each report: 110 minutes </li></ul>
  6. 7. Benchmarking content and accessibility <ul><li>Websites </li></ul><ul><li>Integrated communication </li></ul><ul><li>New reporters </li></ul><ul><li>Objectives and targets </li></ul><ul><li>Understanding performance </li></ul><ul><li>Reporting on the issues </li></ul><ul><li>Climate change </li></ul><ul><li>Case studies and testimonials </li></ul><ul><li>Visuals and design </li></ul><ul><li>Message to stakeholders </li></ul><ul><li>Governance & management systems </li></ul><ul><li>Stakeholder engagement </li></ul><ul><li>Assurance </li></ul><ul><li>Covers </li></ul><ul><li>Materiality </li></ul><ul><li>Organizational profile </li></ul>Accessibility Performance Context Credibility Focus
  7. 8. What did we find out? <ul><li>8% first CSR report </li></ul><ul><ul><li>Canadian: 24% </li></ul></ul><ul><ul><li>U.S.: 0% </li></ul></ul><ul><li>What were they called? </li></ul><ul><ul><li>Sustainability report: 36% </li></ul></ul><ul><ul><li>Corporate responsibility report: 28% </li></ul></ul><ul><ul><li>CSR report: 13% </li></ul></ul><ul><li>How long were they? </li></ul><ul><ul><li>Canada: 42 pages </li></ul></ul><ul><ul><li>U.S.: 54 pages </li></ul></ul><ul><ul><li>Europe, Japan and Australia: 82 pages </li></ul></ul>
  8. 9. Five significant trends: One <ul><li>CSR reports are tightly focused on what matters </li></ul>
  9. 10. Five significant trends: One <ul><li>What matters tends to be identified and tracked </li></ul>
  10. 11. Five significant trends: Two <ul><li>Climate change is the dominant issue and depth of information is becoming deeper </li></ul>
  11. 12. Five significant trends: Three <ul><li>CSR efforts are reaching further – upstream and downstream </li></ul>
  12. 13. Five significant trends: Four <ul><li>Companies are working harder to engage stakeholders </li></ul><ul><ul><li>Micro sites: 48% </li></ul></ul><ul><ul><li>Videos: 35% </li></ul></ul><ul><ul><li>Social networks: 24% </li></ul></ul><ul><ul><li>Interactive maps, diagrams or games: 23% </li></ul></ul><ul><ul><li>Blogs: 15% </li></ul></ul>
  13. 14. Five significant trends: Five <ul><li>Formal stakeholder engagement is part of the process </li></ul><ul><ul><li>88% identified major stakeholder groups </li></ul></ul><ul><ul><li>97% described specific stakeholder engagement methods </li></ul></ul><ul><ul><li>59% provided results of engagement </li></ul></ul>
  14. 15. Covers: What did the best practice companies do? <ul><li>They used their covers to sell readership while conveying their corporate culture, priorities and accomplishments: </li></ul><ul><ul><li>69% had a cover theme or message </li></ul></ul><ul><ul><li>8% used the back cover to support the front cover or deliver other significant messages </li></ul></ul><ul><ul><li>57% linked the CSR and AR through theme and design </li></ul></ul>Daimler AG 360 º Magazine and Fact book
  15. 16. Report scope – materiality: What did the best practice companies do? <ul><li>They identified the company’s key issues, the materiality process, key stakeholders and the report’s parameters: </li></ul><ul><ul><li>85% explained the report scope </li></ul></ul><ul><ul><li>83% used the GRI guidelines </li></ul></ul><ul><ul><li>37% discuss the materiality process </li></ul></ul>Campbell Soup Company
  16. 17. Organizational profile: What did the best practice companies do? <ul><li>They provided an organizational profile providing context for their company’s CSR strategy, initiatives and performance: </li></ul><ul><ul><li>80% published a corporate profile </li></ul></ul><ul><ul><li>79% described their CSR strategy, policy and/or vision </li></ul></ul>Exxon Mobil Corporation
  17. 18. Messages to stakeholders: What did the best practice companies do? <ul><li>They feature a candid and strategic message intensely focused on the company’s CSR issues, priorities and challenges: </li></ul><ul><ul><li>100% publish a letter from the CEO </li></ul></ul><ul><ul><li>24% publish a second message </li></ul></ul>Nike, Inc.
  18. 19. Governance and management systems: What did the best practice companies do? <ul><li>They explained how the tenets of corporate responsibility are entrenched in the culture policies, codes and principles: </li></ul><ul><ul><li>89% contained a dedicated discussion of governance </li></ul></ul><ul><ul><li>79% explained CSR management systems </li></ul></ul><ul><ul><li>65% reported on risk management </li></ul></ul>ArcelorMittal
  19. 20. Assurance: What did the best practice companies do? <ul><li>They had their CSR reports verified by sustainability consultants, stakeholder panels and/or accounting firms: </li></ul><ul><ul><li>20% of Canadian companies provided an assurance report compared to 65% of non-North American companies </li></ul></ul><ul><ul><li>61% by accounting firms or CSR consultants </li></ul></ul><ul><ul><li>43% of assurance reports contained recommendations </li></ul></ul>Nexen Inc.
  20. 21. Reporting on the issues: What did the best practice companies do? <ul><li>They structure their report around the issues that had – or could have – the most impact on operations: </li></ul><ul><ul><li>95% had a separate section on environmental performance </li></ul></ul><ul><ul><li>80% provided information on their supply chain </li></ul></ul><ul><ul><li>97% provided information on community investment </li></ul></ul>Ford Motor Company
  21. 22. Case studies and testimonials: What did the best practice companies do? <ul><li>They provided balanced testimonials and case studies from credible, relevant stakeholders to emphasize messages: </li></ul><ul><ul><li>47% provided testimonials or commentary </li></ul></ul>Enbridge Inc.
  22. 23. Visuals and design: What did the best practice companies do? <ul><li>They used photographs, illustrations, graphs, diagrams and maps to help convey complex messages, capture attention and pique curiosity. </li></ul>Total S.A.
  23. 24. Objectives and targets: What did the best practice companies do? <ul><li>They identified the company’s sustainability goals, their importance and strategies in place for achieving new targets: </li></ul><ul><ul><li>65% published objectives in scorecards </li></ul></ul><ul><ul><li>27% of those objectives were quantified </li></ul></ul><ul><ul><li>88% set future targets </li></ul></ul>Wm Morrison Supermarkets PLC
  24. 25. Understanding performance: What did the best practice companies do? <ul><li>They explain CSR performance with the same diligence used to report financial and operating performance: </li></ul><ul><ul><li>55% provided summary performance tables or graphs </li></ul></ul><ul><ul><li>24% of Canadian companies identify which performance indicators are key compared to 44% of non-North American companies </li></ul></ul><ul><ul><li>69% provided a GRI index table </li></ul></ul>British Land PLC
  25. 26. Websites: What did the best practice companies do? <ul><li>They took full advantage of the internet’s capabilities by including interactive features, video and feedback tools: </li></ul><ul><ul><li>81% of all companies have CSR information on their websites </li></ul></ul><ul><ul><li>50% draw attention to the information on the corporate home page </li></ul></ul>Marks and Spencer Group PLC
  26. 27. Websites: What did the best practice companies do? Stora Enso OYJ R
  27. 28. Integrated communication: What did the best practice companies do? <ul><li>They acknowledge that CSR has a much wider audience than an annual report, and that different stakeholders require different amounts and kinds of information. </li></ul>
  28. 29. Integrated communication: What did the best practice companies do? Full PDF report Supplementary reports SABMiller PLC SAM reporting portal Sustainable development website
  29. 30. Integrated communication: What did the best practice companies do? Intel Corporation Full and summary interactive PDF reports CR website CSR blog HTML report
  30. 31. Taking that first step: Acknowledging new reporters <ul><li>67% had scorecards; 100% of those scorecards set future targets </li></ul><ul><li>83% used the term “sustainability” </li></ul><ul><li>67% used the GRI guidelines </li></ul>Agnico-Eagle Mines Limited

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